Key Takeaways
- BBVA is advising wealthy clients to allocate 3-7% of portfolios to bitcoin.
- This marks a rare instance of a major bank actively recommending bitcoin to clients.
- The move comes as regulators continue to warn of risks, but BBVA reports positive client response.
Spanish lender BBVA is now advising its wealthy clients to allocate 3% to 7% of their portfolios to bitcoin, according to Philippe Meyer, head of digital & blockchain solutions at BBVA Switzerland.
Speaking at the DigiAssets conference in London, Meyer stated:
“With private customers, since September last year, we started advising on bitcoin. The riskier profile, we allow up to 7% of (portfolios in) bitcoin.”
BBVA’s move is notable, as most private banks merely execute client requests to purchase bitcoin, rather than actively recommending it.
The advice comes after bitcoin reached another record high in May, following a recovery from the 2022 market downturn triggered by the collapse of several major exchanges, including FTX.
Risk and regulatory environment
Regulators maintain a cautious stance, with the European Securities and Markets Authority noting that 95% of EU banks do not engage in bitcoin activities.
Despite this, BBVA has executed client bitcoin purchases since 2021 and now formally advises an allocation to both bitcoin and ether, with plans to expand coverage.
Meyer addressed risk concerns, saying:
“If you look at a balanced portfolio, if you introduce 3% you already boost the performance. At 3% you are not taking a huge risk.”
BBVA clients have reportedly responded positively to the new guidance.
